- Develop an introduction with a thesis statement for the Final Paper.
- Create an outline of the major headings with a two- to three-sentence description of what you will discuss under each heading.
Explanation & Answer length: 2 pages
1 Property Lease Contract/Agreement NAME The University of Arizona Global Campus Business Law/ BUS 311 INSTRUCTOR NAME DATE 2 Introduction A contract refers to a verbal or written agreement, especially regarding employment, tenancy, or sales intended to enforce the law. It is a legally binding document established between at least two parties that defines the duties and rights of the people involved in the agreement. It is imperative to note that a contract becomes legally enforceable when it meets the requirements and approval of the law. Bonner (2020) states that a contract or an agreement should possess a lawful purpose to be enforceable. For instance, if one person hires another person to kill a business partner and the person took the money without fulfilling the objective, nothing can be done.
A contract of killing someone is considered illegal, and one cannot seek legal intervention when breached. This paper aims at describing elements and breach of contract. Car Leasing Contract/ Agreement In the year 2019, September 1st, I was invited to attend my sister’s wedding due on September 7th the same year and after that also travel to the upcountry to visit my mother, who was seriously ill. I didn’t have a traveling means and opted to go to the nearest car leasing company to hire a car for one month to facilitate my travel. I visited the company where the management briefed me on the terms and conditions of leasing a car.
The company management and their head of legal department provided the car renting firms that I had to fill and ascertain that I will own the car for one month and return it while in good condition. On September 2nd, 2019, I went to pick the car and paid $25,000, which was to expire on October 2nd, 2019. I was advised to get Gap insurance; the company also requested the deposition charge of about $250 and a security deposit which guaranteed that I would pay for any damages caused to the car while in my possession. I accepted all terms, honored all payments, and took the car for one month. 3 Elements of an Enforceable Contract Contracts can be in the forms of writing, verbal, or action. Bilateral contracts are some of the basics where both parties involved in the business transaction act to uphold the agreement.
Novak (2020) states that six elements offer the agreement to be valid according to the law. Below are some of the crucial aspects that, when are missing, the contract cannot be enforced. Capacity Contractual competency outlines the ability of an individual to participate in an agreement. Minors, intoxicated people, and mentally disabled individuals lack the contractual capacity to enter into any enforceable agreement. Novak (2020) narrates that if an individual lacked the psychological capability to comprehend the effect and meaning of the agreement or the offer, they do not possess the right mind to enter into any legal agreement. People under 18 years and those under drag influence and alcohol are not permitted to sign any legal contract. Therefore, anybody committing to an agreement must have the right age, free from drug influence, and mentally stable.
For instance, in my case of hiring a car, it was mentally tough to engage in an agreement, I was not under the influence, and I am of age to enter into any contract. Offer An offer represents the outlined conditions and terms to binding the agreement. The proposal represents the need to uphold specific words that one should adhere to once the contract is agreed upon (Novak, 2020). In some offers, one may promise an action or not act in a particular way as promised to act the same while other people may hope for a promise to act in a specific manner. For instance, my agreement of hiring a car for one month was to pay for the damages caused and pay for the deposition charge of about $250. For an agreement to go through, the two parties involved must find consensus on the offers outlined. 4 Acceptance Accepting the offer implies that an individual is willing to adhere to the terms of the agreement. This element must be made depending on the conditions specified in the offer or any reasonable manner for that specific situation (Novak, 2020).
Accepting the offer means one entirely agrees to the terms and conditions outlined in it. A counter-offer is usually provided in case one wants to revoke the previous offer. In my case of hiring a car, the acceptance element was achieved once I decided to pay for charges, agreed on other terms and conditions, and took the car. Legality The legality element is relatively straightforward when dealing with contracts. The element explains whether the rules are within the legal frameworks. If the subject matter in the contract is not legal, the agreement will not be valid. For instance, one cannot sign a contract to kill another person, but one can sign a contract to get paid after painting a house. In my case, I signed a contract to pay for the car for one month after using it, which was entirely legal and acceptable.
Consideration Consideration outlines that an individual should exchange one thing for another. Both parties involved in the contract must present something valuable that would make the other agree. The item considered to be of value can be accomplishing an action, boycotting an action, or money. For instance, I paid money to own a car on a short-term contract of one month. Novak (2020) ascertains that It is crucial to understand that doing something voluntary does not count as a consideration. In some cases, an individual or a party might be willing to offer a consideration but depending on a promise offered to provide value later. 5 A Breach of Contract A breach of contract happens when one party to the agreement fails to adhere to the legal requirements under the contract. It refers to a legal course of action and qualifies as a civil wrong in which one fails to honor a binding agreement by non-performance or interference. For instance, in my agreement to hire the car for one month, it will be a breach of contract if I fail to pay for damages caused on the car or extend the period I am supposed to return the car.
Breach of contract may be either anticipatory or actual. An actual breach occurs when one party fails to fulfill the obligation required by the contract on the due date. An anticipatory breach happens when one party announces in advance of the due date that one plans not to adhere to the requirements (Phulpoto, 2017). Whenever there is a breach of contract, the innocent party can claim damages under the common law. Remedies for Breach Some of the most common remedies for breach of contract comprise; compensatory damages, injunction, rescission, nominal damages, liquidated damages, and specific performance. An award regarding compensatory damage is the most common legal remedy provided in cases of breach of contract. The amount awarded as compensatory damages is done based on the actual losses experienced, and it involves expectation damages and consequential damages (Newman, 2021).
Specific performance refers to a particular remedy for breach of contract where a court rules that the breaching party should perform their end of the agreement. Injunction serves the same purpose as the specific performance. Still, the common difference is that in specific performance, the Court rules that a party must do something, while in an injunction, the Court prevents a party from doing something. Rescission, as another remedy, gives leeway to the non-breaching party to counsel the contract. 6 Conclusion Legal contracts refer to legally binding documents between two or more parties outlining the duties and roles of the people involved in the contract. Enforceable contracts must meet specific requirements referred to like elements that agree to be legally binding. Some of the most critical contract elements include; capacity, legality, offer, acceptance, and consideration.
Parties involved in the contract should agree to the offers, accept and ensure that the terms and conditions in the offer are legal. It is also important to note that minors, people under the influence, and mentally ill individuals are not allowed to sign contracts under the law. In some instances, breaches of contract occur. When a breach of contract occurs, an individual may seek compensation, injunction, or specific performance as remedies to breach of contract. 7 Reference Bonner M, (2020). What is a Legal Contract? Retrieved from https://www.thebalancesmb.com/what-is-a-legal-contract-462462 Newman M. (2021). Common Remedies for Breach of Contract in Business. Retrieved from https://millerlawpc.com/6-remedies-breach-of-contract/ Novak C.M, (2020). These 6 Elements Make a Contract Legally Binding. Retrieved from https://www.g2.com/articles/elements-of-a-contract Phulpoto S, (2017). Breach of Contract and Remedies to Breach of Contract. Retrieved from https://www.academia.edu/9741740/Breach_of_Contract_and_Remedies_1_Breach_of_ contract
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